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  1. 1. Coke vs. Pepsi By: Alyssa Davis
  2. 2. Introduction  Blind taste test included 67 participants  Functional Magnetic Resonance imaging technology was used to monitor brain activity during consumption  Tests were first blind taste tests  Images of brands were shown in the second part of the test during consumption
  3. 3. Blind Taste Tests  Each participant was asked their preference: Coke or Pepsi  The participants then consumed the beverages and their brains were monitored while doing so  The ventrolateral prefrontal cortex lights up naturally with either beverage, responding to the “reward” of sugar  Blind taste tests typically don’t favor either brand and end up right around 50/50
  4. 4. Branded Taste Tests  The participants were again asked to consume their beverages while being told what exactly they are drinking  The dorsolateral prefrontal cortex and hippocampus both lit up when participants knew they were consuming Coke  In most cases, images of Pepsi did not produce this type of brain activity  This led to a 75-25 preference of Coke
  5. 5. Why Coke is preferred  In these branded tests, the participants responded heavily to brand imagery  When a person thinks of Coke, they automatically correspond it to things like polar bears, Santa Claus, Mean Joe Green, and other iconic imagery  Coke triggers memory-related brain regions that are related to cultural influences  It’s not just the taste that matters, but the strength of the Coca Cola brand keeps buyers coming back for more
  6. 6. Coke vs. Pepsi  Out of 635 people surveyed, 346 preferred Coke and 289 preferred Pepsi
  7. 7. Coke vs. Pepsi  HYPOTHESIS TESTS sample proportion 46.00% population proportion 51% std error 0.0198 sample size 635  Do more people prefer Pepsi? NULL: π<= 50% More than half do not prefer Pepsi. ALTERNATIVE: π > 50% More than half do prefer Pepsi. one-tailed or two-tailed? 1 test statistic (obs) -2.77 critical measure 1.64 obs > critical? yes p-value 0.00283 a-level 0.05 p-value < a-level? yes Null is accepted. More than half do not prefer Pepsi.
  8. 8. Recommendations  Since Coca Cola is getting a lot of their business from their cultural ties, it is important for them to stay true to what they have been doing for years  Pepsi needs to find ways to make their brand more recognizable.  Pepsi should work harder to relate to all people culturally, rather than just the youth culture
  9. 9. Conclusion  In a blind taste test, most customers prefer the two soda brands equally  Coca Cola has a very strong brand image which leads customers to feel excited when consuming their products  Coke was preferred 75 percent to 25 percent according to the brain scans in branded tests  Taste doesn’t always matter, but cultural ties will hold strong in consumer behavior